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Unformatted text preview: Assignment 9.1 Read Chapters 14 and 15(pages 654 -664 only) Assignment 9.2 Please pick Two of the questions below to post to or follow up on a classmate's post during the week. All of your postings to the discussion board must be made over at least a 2 day time period . 1. Explain why sunk costs are not considered relevant when choosing among alternatives. Sunk costs remain the same among different alternatives and cannot be changed by current or future actions. Therefore, sunk costs do not add useful information for selecting an alternative and should be ignored. (Hilton, 2009, p. 612). Reference Hilton, R. (2009). Managerial Accounting. Creating Value in a Dynamic Business Environment, 8th edition. The McGraw Hill Companies, New York, NY. 10. Why is a focus on the customer such a key principle of target costing? Target costing involves setting product price based on the target market. Extensive research is necessary to determine what a customer within the target market is willing to pay before setting...
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This note was uploaded on 11/13/2011 for the course MBA 642 taught by Professor Jamesstephens during the Summer '11 term at Bellevue.
- Summer '11
- Financial Accounting